All good things must come to an end

One of the best almost-no-risk investments I ever made was a zero-coupon bond issued by the state of Tennessee. I bought it when I was just an investing novice at age 27. I paid $251 for a bond that was to yield 6.9% for 20 years. It matured May 1, and I have mailed it to the trust department at one of the banks for redemption. Hopefully, I will get my check this week for the maturity value of $1,000. And since it was a municipal bond, all that interest/gain is totally tax-free!!

Now, because of my bucket mentality, and because this originated from funds given to me by my dad, I'm searching for the next investment to keep building this little pot of money. Only wish I could find another tax-free super-safe 6.9% guaranteed return.

What I'm considering??? $250 in I-bonds, $375 to NNN, and $375 to CEL. A little speculation with the CEL, safety in I-bonds, and real estate diversification in NNN.

Extra Money I'm not sending to the Creditors

I can't remember exactly when my father started sharing his AT&T dividends with me. I know it was before the Ma Bell divestiture in 1984. And I'm thankful that I did inherit at least of a bit of his 'savings' gene. I have never spent any of the money he sends to me quarterly. It has always gone to savings. In the early years, I put it in a regular savings account. I've also bought U.S. EE Savings Bonds, a Tennessee zero coupon bond, shares of SBC Communications (now AT&T)...all which I still own today. I even used some of that money to buy shares of Qwest Communications and Washington Mutual which turned out to be not such wise decisions, but I was investing it and NOT SPENDING!

When I received my check from Dad earlier this month, I checked the current rate on I-Bonds. For the six months ending April 30, 2010 they are paying 3.36%. Getting a Treasury Direct account set up takes a little time for them to mail you a verification card in the mail. But once the account is set up, it's so easy to buy Savings Bonds! And I choose to let them hold my bonds electronically. No more worries about keeping up with those little paper bonds! I just placed my order tonight for a $100 I-bond. I know I won't get rich off 3.36%, but I love adding to that little nest egg that I know I've received from my father.